UK: OFT clears Diageo acquisition of Bushmills

The UK competition authorities have given the green light to Diageo's purchase of the Irish whiskey brand Bushmills.

The UK's Office of Fair Trading (OFT) has decided, on the information currently available to it, not to refer the anticipated acquisition by Diageo.

Diageo entered into an agreement with Pernod to purchase its Irish whiskey brand, Bushmills, for approximately GBP200m in June.

"The acquisition of Bushmills represents an important opportunity for Diageo as Irish whiskey is a category in which, currently, Diageo does not participate," the company said in the statement at the time. "Diageo expects that the proposed acquisition will be economic profit positive during the fourth full year after completion using a 9% weighted average cost of capital."

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